Home Loss Payment Increases – What you need to know

The Home Loss Payments (Prescribed Amounts) (England) Regulations 2017 (SI 2017/769) come into force on 1 October 2017 (“the Regulations”).

The Regulations increase the amount of compensation payable under the Land Compensation Act 1973 (“LCA 1973”) to a person who is permanently displaced from their home where possession of the property is required for the purposes of re-development or improvement by a local authority or RSL.

When is Home Loss Payment payable?

Home Loss payments are limited to those with a legal interest in the property including tenants. The payments will apply to occupiers who have to move permanently as a result of their property being demolished or re-developed. Home Loss payments are paid by the local authority or RSLs if they are intending to re-develop/improve the property and have obtained possession on this basis.

How is Home Loss Payment calculated?

The amount payable depends on the extent of the occupier’s interest in the property. If the occupier has an ‘owner’s interest’ in the property (freehold or leasehold with more than 3 years to run), the amount will be 10% of the property’s market value but will be subject to the new minimum and maximum amounts introduced by the Regulations, which have been raised both for owner-occupiers and for tenants:

  • The maximum amount for owner-occupiers has increased from £58,000 to £61,000;
  • The minimum amount for tenants has increased from £5,800 to £6,100.

Where the occupier is a statutory tenant, the prescribed amount of compensation payable has been increased by the Regulations from £5,800 to £6,100.

For further information or advice on making home loss payments, please contact Kerri Harrison in our Housing Management team.

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